IRS Fresh Start Program — Maryland, DC & Virginia

"IRS Fresh Start Program" is one of the most searched tax relief terms — and one of the most misunderstood. It isn't a single program you apply for. It's an umbrella term for a set of IRS policy changes, first introduced in 2011 and expanded since, that made several existing resolution options more accessible. Late-night ads often talk about it as though it's a special one-time deal; in reality, it's the current, ongoing framework the IRS uses for several standard programs.

What Fresh Start actually changed:

Expanded Offer in Compromise eligibility. The formula the IRS uses to calculate your Reasonable Collection Potential — the basis for your settlement amount — was adjusted to look at a shorter period of future income for lump-sum and short-term offers, and revised how home equity and other assets are counted.

Streamlined Installment Agreements. Fresh Start raised the balance threshold for a streamlined agreement (no full financial disclosure required) up to $50,000, and extended the maximum repayment term. This lets many more taxpayers set up a payment plan without submitting a full Collection Information Statement.

Lien withdrawal criteria. Fresh Start made it easier to get a Notice of Federal Tax Lien withdrawn after the debt is paid, and created a path to request withdrawal after entering a Direct Debit Installment Agreement, under specific conditions — even before the balance is fully paid.

Why this matters for how we approach your case: Because Fresh Start isn't a separate application, "qualifying for Fresh Start" really means qualifying for one or more of the underlying programs — OIC, streamlined installment agreements, or lien withdrawal — under their current, expanded criteria. We evaluate your situation against all of them together rather than treating Fresh Start as a single yes/no determination.

Maryland, DC, and Virginia: State tax authorities each have their own versions of expanded relief programs, separate from the federal Fresh Start framework. We evaluate federal and state options side by side so you get the full picture, not just the IRS piece.